Are You Considering New Construction?
I put this information together to help home shoppers like yourself determine if purchasing a new construction home is in your best interest.
The information provided is not to detour you from buying a new construction home but to add knowledge on top of the knowledge you already possess to make sure the 6 to 8 figures you’re about to spend on your new home is the best choice for you.
This is not necessarily a New Home vs a Resale Home page; it’s more of have you thought about ‘this’ or ‘that’ page.
In all my years in Real Estate, every new construction home shopper I’ve worked with didn’t know at least one of the bullets below. Without further ado…
IS New Construction really what you want?
- First, what is the reason you want to buy a new construction home? If it is simply because everything is new? Then let me ask you this; if you found your ideal home that was completely renovated, would you not consider purchasing it? If you’ve answered yes to this question, keep your options open.
- How do you feel about having a homeowner’s association (HOA) or a group of people that can tell you what you can or cannot do with your home who also possesses enough power to take your home? Do not get it twisted, there are also a ton of pros to living in a homeowner’s association community which all constitutes to maintaining the neighborhood’s integrity and property values, but this one fact is often overlooked or misunderstood. If you pay your dues, assessments, and/or fines (avoid fines by adhering to the community’s by-laws) you should be ok. Rules for homeowners’ associations vary from neighborhood to neighborhood. If the homeowner’s association is top of your interests or concerns, the first thing you should do is determine what the HOA fee includes, then determine if the inclusions are worth the price you must pay. Speaking of price, depending on when you buy into the community, the HOA fee can go up and it most likely will. The last thing I want you to keep in mind is once the builder is done building in your neighborhood, the HOA by-laws will then be passed to the residents or a property management company which is when your fees and/or by-laws could change. I am not here to speak down on HOA’s, as my neighborhood has one, but I am here to let you know what to keep in mind.
- What is your budget? (Contact me directly if you need help determining your budget) Your budget determines a lot such as your location, if you can even purchase new construction, and/or it also influences your timeframe. If you are on a strict budget but need to be within the City of Orlando city limits, then you may have to consider other options should your budget not align with new construction homes here in Orlando City or nearby subsidiary cities or communities. Other options include but not limited to looking into a secondary or third location or purchase a resale home. Be prepared to make an emotional adjustment for just in case purposes. Make sure your Realtor knows the general market on top of you doing your own research about the market, this will help you determine which new construction markets can fit your budget. Determining your budget should be the first thing you do; this will alleviate a lot of emotional strain and help formulate a customized buying strategy.
- Timeframe means if you have a $375,000 budget, you need to find a quick move-in because your lease ends in 60 days or because your current home is pending sale but the quick move-in this builder has available for your home needs is being sold for $435,000 then this quick move-in scenario may not work for you. You may still be able to move into that same community with that same floor-plan but you may have to get it built from scratch at its base price of $350,000 which will take 6-9 months in most cases.
- Piggybacking on the before mentioned point, keep in mind, in most cases, especially around that $375,000 price point, you will get more bang for your buck in a resale home versus a new construction home. It is quite possible, your resale home will have all the upgrades, maybe even a private pool if that is your preference or on a larger lot so do not count resale completely out. Get with your Realtor and vividly discuss what you are looking for in your new home. If you are not committed to a Realtor, contact me directly, I would love the opportunity to serve you!
- Have you considered going with a Custom Builder? Did you know you can get a custom-built home for less than or equal to a new construction home? I mean, since we are being honest, this will be contingent on location, square footage, etc. but it is something that can be done and can be considered.
If at the end of the above highlights and purchasing a new construction home is still an option of yours, click the image below to start your new construction search for Orange, Seminole, Lake, Osceola, and Polk counties. For those of you who are interested in building a custom home, contact me directly; I have around 30 custom builders for you to choose from.
If you do not have a Realtor and would like to grant me the opportunity of being your Realtor, schedule your free consultation below.